One of the most important tasks for a new franchisor is selecting his (or her) initial franchisees, and this selection challenge to pick winning franchisees will continue to exist even as the franchise system matures.

Formative Stage: Selection is Key

If one asks franchisors when did they make their biggest mistakes when entering into the world of franchising, many would say it is at this early stage in the franchisee selection process. An interesting study would be to focus on how many of the first batch of franchisees are still in the system three or five years later. Many franchisors and other members of the franchise community believe that when the franchisor makes its initial franchisee selections, bad judgment on prospective franchisee selections can have deleterious consequences and can result in actions that will severely hinder the speed at which the company can become successful, if at all.

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